Related Words

Nominal Exercise Price: The exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price.

Price Impact Costs: Related: Market impact costs

Price Give: Used in the context of general equities. Willingness of a buyer or seller to negotiate on price, within reason, from the price at the last sale or the indicated level. See: Takes price.

Price Improvement: Price improvement occurs when you pay less or receive more on a securities transaction than the bid and offer prices being currently quoted. In other words, the price you pay to buy is lower . . . View Full Definition

Price Gap: A term used when the price of a stock rockets or dives in a direction away from its last price range, such as a stock with a trading range of $10-$12 that closes at $12 and climbs to $14 the . . . View Full Definition

Price Index: Current price expressed as a proportion to the same price in an earlier time period, commonly called the base period. Monthly price indexes computed by the National Agricultural Statistics S . . . View Full Definition

Price Leadership: A price charged by the dominant producer that becomes the price adopted by all the other producers.

Price Fixing: The practice of conspiring to establish fixed fees or prices for services rendered or goods sold. In recent years, the setting of attorney fees by local bar associations and commission perce . . . View Full Definition

Price Compression: The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price.

Price Discovery Process: The process of determining the prices of assets in the marketplace through the interactions of buyers and sellers.